System and method for automated optimization of financial assets

ABSTRACT

A financial management network is disclosed for optimizing interest return and/or deposit insurance coverage among a plurality of online accounts that may include one or more savings accounts and a checking account, by automatically allocating and transferring funds among the accounts without intervention of the account holder, in accordance with constraints that may be set by the financial management network, account holder, the account holder&#39;s financial advisor, and/or imposed by the associate financial institutions holding the accounts.

The present application is a Continuation of U.S. patent applicationSer. No. 15/678,453 filed Aug. 16, 2017 and entitled “SYSTEM AND METHODFOR AUTOMATED OPTIMIZATION OF FINANCIAL ASSETS.” U.S. Ser. No.15/678,453 claims priority to U.S. Ser. No. 14/606,931 filed Jan. 27,2015, bearing the same title. U.S. Ser. No. 14/606,931 claims priorityto provisional application Ser. No. 61/932,495 filed on Jan. 28, 2014,bearing the same title. The contents of U.S. Ser. No. 15/678,453, U.S.Ser. No. 14/606,931 and U.S. 61/932,495 are hereby incorporated byreference herein in their entirety.

FIELD

The present invention generally relates to systems, product programs andmethods of using the same for optimizing the distribution of financialassets among financial accounts via a fully-automated approach that doesnot require user intervention on an ongoing basis. The present inventionfurther relates to systems, product programs, and methods of using thesame for automated management of financial assets, including thetransfer of financial assets between financial accounts according to aset of rules that optimize the distribution of the financial assetsamong those accounts according to certain criteria, and subject tocertain constraints.

BACKGROUND

In many economies, financial institutions, for example, banks, brokeragefirms and credit unions, offer account holders interest payments at setinterest rates for maintaining financial assets in accounts operated bysuch financial institutions. However, these set interest rates may varyover time depending on overall financial markets and each financialinstitution's need for deposits, and may differ from one financialinstitution to another. The current scheme of interest return onfinancial assets stored in various financial accounts provideschallenges to an account holder in managing multiple accounts andoptimizing the allocation of his or her financial assets among suchaccounts to obtain the best overall interest return, whilesimultaneously maximizing the degree to which such assets are kept safevia diversification and deposit insurance schemes, such as that providedby the Federal Deposit Insurance Corporation (FDIC).

For example, many traditional “brick and mortar” financial institutionsoffer personal checking accounts at comparatively low or zero interestrates, but provide substantially instantaneous access to financialassets in those checking accounts. In today's world of electronicbanking, such checking accounts may be configured to allow for ingoingand/or outgoing transfer of financial assets to and from other accountsvia batch electronic transfers such as Automated Clearing House (ACH)transfers or wire transfers such as FedWire transfers. One feature ofACH transfers is that they may also be provided with mechanisms toreverse erroneous or unauthorized transfers within a designated periodsuch as 60 days.

In contrast to low or zero interest bearing checking accounts, otherfinancial institutions, such as online banking institutions, may beattractive in that they offer to a user savings accounts with higherinterest rates than their “brick and mortar” counterparts, but sometimesplace restrictions on access to financial assets by a user, for example,by requiring a waiting period for funds to clear or transfer, or byplacing limitations on the method by which such funds may be transferredor accessed. At present, many of these online banking institutions allowfor funds to be transferred into or out of their online savings accountsvia ACH transfers, which they provide to their customers free of charge.In some cases, online banking institutions also provide for the abilityto send or receive funds via wire transfers.

Since interest rates may be subject to frequent and/or unpredictablefluctuations among various financial institutions, account holders mustcontinuously monitor, plan, and/or effect transfers of financial assetsamong their various accounts in order to gain the maximum benefit ofinterest rates offered across different financial accounts at a giventime. Moving funds from one account to another can often requiremultiple steps, careful coordination, and mathematical adjustments tothe amounts being transferred due to the time that elapses in theprocess of making such funds transfers.

Prior attempts to optimize returns on financial assets using, forexample, automated cash sweep systems, have sought to allocate cashacross multiple accounts so as to provide increased FDIC insuranceprotection, but not necessarily to optimize interest yield.

For example, there are prior art cash sweep systems that operate as“brokered deposit” systems. Such brokered deposit systems involvedeposits that are sold from bank to bank. Since such deposits arecharacterized as a lower tier of capital from a regulatory perspective,optimization systems involving such brokered deposits are lessattractive, since banks are only willing to pay below-market interestrates for such deposits.

Among the inventive concepts incorporated in the system describedherein, the optimization of interest earnings among a user's accounts isstructured differently from such brokered deposit systems. Since i) theuser's accounts are conventional deposit accounts that they holddirectly in their own names, ii) the banks cannot dictate the extent towhich they receive funds, and iii) the banks do not pay a fee to receivesuch funds, these deposits are not considered by the regulators to be“brokered.” As such, these deposits receive a higher interest rate thanfunds that are subject to brokered deposit systems. Optimizing thedistribution of financial assets among such conventional depositaccounts thus provides higher yields to the user, while simultaneouslyaffording the banks more favorable regulatory treatment as it relates tothese deposits.

Prior art sweep systems using brokered deposit accounts are alsodeficient in that they may not provide full insurance to the accountholder/user, since the account holder/user may have outside deposits orCDs at the same institutions that serve as program banks under thebrokered deposit system, and overlapping deposits may result in the userinadvertently exceeding the deposit insurance coverage limits. On theother hand, the invention disclosed herein permits the accountholder/user to easily and directly control overall limits on a per bankbasis, thereby providing control and reducing the likelihood that therewill be uninsured deposits.

Still further, in prior art cash sweep systems, the accounts are notdirectly held by the user and therefore cannot be directly accessed bythe user without coordination with the cash sweep administrator.Further, if the main bank controlling, for example, the brokered depositnetwork were to fail, the user would lose access to the funds being heldby the related banks involved in the brokered deposits for a period oftime.

Accordingly, there is a need for a financial management system that canavoid the deficiencies of prior art systems. These deficiencies areobviated by the invention described herein, in which all accounts arenot only optimized, but at all times are directly accessible to theuser/account holder without needing to coordinate with a third party.

The financial management system disclosed herein can determine theoptimal allocation of financial assets across different financialaccounts set up by a user/account holder, and then instruct orfacilitate the transfer of financial assets among multiple accounts toallocate an account holder's financial assets in an optimal manner sothat the user receives the maximum available amount of interest returnon the financial assets disposed across the various accounts, subject tothe constraints imposed by simultaneously maximizing FDIC insurancecoverage, or any other such constraints that may be set by the user oradministrator of the financial management network.

The disclosed financial management system can be configured to allocatean account holder's financial assets among the different accounts to beoptimized subject to additional or alternative factors or constraints,such as keeping assets within insurance limits set by deposit insuranceschemes or other purchased insurance products, keeping within transferlimits imposed by the banks and/or minimum and/or maximum accountbalances as may be required by financial institutions or desired by theuser, maintaining checking account balances at specified deposit levelsand/or to provide a user with other advantages that different types offinancial accounts have to offer.

The disclosed financial management system can operate in an at least apartially automated manner to effect such financial transfers withlittle or no monitoring and/or intervention by the user/account holderand/or at no marginal cost to the user per transfer effected.

As detailed further herein, a unique and inventive concept of theunderlying architecture of the system disclosed herein is that anytransfers of funds required to achieve optimized interest returnsoriginate as requests made by online banks through the AutomatedClearing House (ACH) for either an ACH credit to the user's linkedchecking account or as an ACH debit that pulls funds from the checkingaccount.

Significantly, among the many inventive concepts included in thedisclosed system, the checking account at the hub of the disclosedsystem is passive in that the checking account does not control the flowof funds into or out of the checking account. Advantageously, thisarrangement avoids funds transfer limitations often imposed bybrick-and-mortar banks, as well as fees that are normally charged forfunds transfers from a checking account. Because transfers are handledby the online banks who assume the costs for such ACH transfers, thereare no costs incurred by the user of the disclosed system.

SUMMARY

As used herein and as will be clear from the context, the term “account”may refer to the account holder's account per se, or to the associatedphysical interface that permits the account to be electronicallyaccessed by either the user or the financial management system disclosedherein. Further, the terms “user,” “client,” “account holder,”“customer,” and “member” are used interchangeably in this disclosure

According to an exemplary embodiment, a financial management system isdisclosed, comprising a first financial management network that connectsa checking account, a first savings account, and a second savingsaccount. The financial management network comprises at least one datastore, a processor and a product program for implementing the desiredtransactions, as further discussed herein. The financial managementnetwork, checking account, first savings account, and second savingsaccount are each interconnected along a data network.

In an exemplary embodiment, the checking account is associated with afirst interest rate.

In an exemplary embodiment, the first savings account is associated withan interest rate that is higher than the first interest rate.

In an exemplary embodiment, the second savings account is associatedwith an interest rate that is equal to or higher than the first interestrate.

In an exemplary embodiment, the processor is configured to apply one ormore rules stored in the at least one data store to instruct the firstsavings account and/or the second savings account to initiate a transferof financial assets between the respective first savings account and/orsecond savings account and the checking account.

In an exemplary embodiment, the one or more rules determine an optimalallocation of financial assets among one or more of the checkingaccount, first savings account, and second savings account.

In an exemplary embodiment, the one or more rules determine an allowableamount of financial assets in one or more of the checking account, firstsavings account, and second savings account.

In an exemplary embodiment, the one or more rules determine an allowableamount of financial assets to be transferred between one or both of thefirst savings account and second savings account and the checkingaccount.

In an exemplary embodiment, the one or more rules determine an allowableamount of transfers of financial assets between one or both of the firstsavings account and second savings account and the checking account overa given period of time.

In an exemplary embodiment, the at least one data store is configured toretain credentials for accessing one or more of the checking account,first savings account, and second savings account.

In an exemplary embodiment, the credentials include one or more of: alogin name, a login password, an account number, a routing number, aname, an address, a telephone number, an email address, informationrelating to a third party financial institution, a PIN number, andanswers to a one or more predetermined questions.

In an exemplary embodiment, the processor is configured to determine anallocation of financial assets among the checking account, first savingsaccount, and second savings account, based upon a relative priority ofthe checking account, first savings account, and second savings accountsubject to the one or more rules.

According to an exemplary embodiment, a financial management network isdisclosed that utilizes links that a user/account holder has establishedbetween a checking account, and one or more savings accounts. Such linksare made accessible to the financial management system which can theninstruct transfers between the linked accounts in the manner disclosedherein.

In an exemplary embodiment the financial management network comprises atleast one data store, and one or more processors for implementing aproduct program as further disclosed herein. Each of the financialmanagement network, checking account, and one or more savings accountsare interconnected along a data network.

In an exemplary embodiment, the one or more processors are configured toapply one or more rules stored in the at least one data store toinstruct at least one savings account of the one or more savingsaccounts to initiate a transfer of financial assets between the checkingaccount and the respective savings account.

In an exemplary embodiment, the one or more rules determine an optimalallocation of financial assets among the checking account and the one ormore savings accounts.

According to an exemplary embodiment, a method of using a financialmanagement system to optimize financial assets is disclosed, andcomprises: (a) providing a financial management network comprising adata store, a processor and a product program; (b) linking a checkingaccount to the financial management network; (c) linking a first savingsaccount to the checking account and to the financial management network;(d) linking a second savings account to the checking account and to thefinancial management network; (e) providing one or more rules to theproduct program; and (f) initiating an optimization algorithm in whichthe product program determines an optimal allocation of financial assetsamong the checking account, first savings account, and second savingsaccount according to a relative priority assigned to the checkingaccount, first savings account, and second savings account subject tothe one or more rules.

In an exemplary embodiment, the method further comprises the step ofinstructing the transfer of financial assets between one or more of thefirst savings account and second savings account and the checkingaccount according to an optimization algorithm.

In an exemplary embodiment, the method further comprises the step ofinstructing the transfer of financial assets to the checking accountfrom one or more of the first savings account and second savings accountaccording to the optimization algorithm.

In an exemplary embodiment, the method further comprises the step ofinstructing the transfer of financial assets to one or more of the firstsavings account and second savings account from the checking accountaccording to the optimization algorithm.

In an exemplary embodiment, the optimization algorithm determines arelative priority among the savings accounts at least partially basedupon an interest rate associated with each of the first savings accountand second savings account.

In an exemplary embodiment, the optimization algorithm determines therelative priority based at least partially on one or more factorsincluding: an objective customer service rating, a subjective customerservice rating, an associated fee, an account limit, a transfer limit,and historical interest rates or historical interest rate volatility.

According to an exemplary embodiment, a method of using a financialmanagement system to optimize financial assets is disclosed, andcomprises: (a) providing a financial management network comprising atleast one data store, one or more processors and a product program; (b)linking a checking account to the financial management network; (c)linking one or more savings accounts to the checking account and to thefinancial management network; (d) providing one or more rules to theproduct program; and (e) initiating an optimization algorithm in whichthe product program determines an optimal allocation of financial assetsamong the checking account and the one or more savings accountsaccording to a relative priority assigned to the checking account and/orthe one or more savings accounts subject to the one or more rules, and(f) individually instructing some or all of a user's online savingsbanks to send cash to the checking account and/or pull cash from thechecking account.

BRIEF DESCRIPTION OF THE DRAWINGS

Various exemplary embodiments of this invention will be described indetail, with reference to the following figures, wherein:

FIG. 1 is a schematic diagram of a financial management system accordingto an exemplary embodiment of the present disclosure;

FIG. 2 is a schematic diagram illustrating linked financial accounts inthe financial management system of FIG. 1.

FIG. 3 is a schematic diagram of the financial management network ofFIG. 1;

FIG. 4A is a schematic view of an exemplary embodiment of the imagelayer of the client interface shown in FIG. 1.

FIG. 4B is a schematic view of another exemplary embodiment of the imagelayer of the client interface shown in FIG. 1;

FIG. 4C is schematic view of another exemplary embodiment of the imagelayer of the client interface shown in FIG. 1;

FIG. 4D is schematic view of another exemplary embodiment of the imagelayer of the client interface shown in FIG. 1;

FIG. 5 is a process diagram of steps a user may take to configure thefinancial management system of FIG. 1 for use, according to an exemplaryembodiment of the present disclosure;

FIG. 6A is an operational flow chart of the financial management systemof FIG. 1 according to an exemplary embodiment of the presentdisclosure:

FIG. 6B-1 and FIG. 6B-2 together illustrate a flow chart of the area ofdetail identified in FIG. 6A as S203;

FIG. 6C is a flow chart of the area of detail identified in FIG. 6A asS205; and

FIG. 6D-1 and FIG. 6D-2 together illustrate a flow chart of the area ofdetail identified in FIG. 6A as S208.

DETAILED DESCRIPTION

In embodiments, the present invention generally relates to systems,product programs, and methods of using the same for managing multiplefinancial asset accounts, determining the optimal allocation offinancial assets across financial accounts and the automated transfer offinancial assets between a first financial account and at least onesecond financial account so that the financial assets are allocated inan optimal manner among the financial accounts according to certaincriteria and without ongoing user intervention. As used herein, the termfinancial account will be understood to include a collection of one ormore units of a financial asset having an associated monetary value,such as a currency. Financial accounts may be collections of financialassets that are held, maintained, and/or otherwise managed by afinancial institution, such as a bank, brokerage firm or credit union.In embodiments, a financial account may be, for example, a checkingaccount or savings account or money market fund account. As describedherein, an interest rate refers to a percentage increase, or in theevent of a negative interest rate, a percentage decrease, of the valueof the financial assets in an account at set intervals of time, effectedvia deposits to the financial account called interest payments. Interestpayments in financial accounts such as checking and savings accounts maybe in the form of, for example, cash. In embodiments, interest paymentsmay be in a form dependent upon the type of financial account to whichthey are applied, for example, yields in the form of coupons on bondsand/or bills in the case of a money market fund.

In embodiments, the present invention further relates to systems,product programs, and methods of using the same for allocating andtransferring financial assets between a first financial account and atleast a second financial account according to an optimization algorithmso that a user's financial assets are distributed across the financialaccounts in a manner such that the financial assets receive the maximumamount of interest payments available as determined by the respectiveinterest rates of the financial accounts within boundary conditions orconstraints that may be user-selected and/or imposed by a financialinstitution or other body, such as the system administrator.

In embodiments, a boundary condition may be a requirement imposed by thefinancial institution that a minimum amount of assets be maintained inin one or more of accounts 300, 400 a, 400 b, 400 c, e.g., a minimumaccount balance. In other embodiments, such boundary condition couldrelate to a minimum account balance that a user desires to keep inhis/her account, irrespective of the requirements imposed by thefinancial institution. A minimum account balance may be, for example, $1USD. Such a boundary condition may be placed on one or more of accounts300, 400 a, 400 b, 400 c, for, example, by the user, by a financialinstitution, or by a default setting of product program 110, and maydiffer across different accounts.

In embodiments, a boundary condition may be a maximum amount offinancial assets in one or more of accounts 300, 400 a, 400 b, 400 c,e.g., a maximum account balance. In embodiments, a maximum accountbalance may correspond to a financial asset limit independent offinancial management system 1000, for example, a government orthird-party insurance limit, such as the maximum FDIC insurance limit(which currently stands at $250,000 USD, but which may change from timeto time). In such embodiments, the boundary condition may be set at amargin of safety below the reference financial asset limit, for example,$249,500 USD in the case of the FDIC insurance limit for an individualaccount, such that principal plus accrued interest remain below the FDICinsurance limit. In embodiments, such a boundary condition maycorrespond to a maximum financial asset limit as specified by athird-party financial institution, for example, $1,000,000. Accordingly,such a boundary condition may be placed on one or more of accounts 300,400 a, 400 b, 400 c, for, example, by the user, by a financialinstitution, or by a default setting of product program 110, and maydiffer across different accounts. In embodiments, such a boundarycondition may correspond to the user's maximum desired balance, whichmay be higher or lower than the default boundary condition set byproduct program 110.

In embodiments, a boundary condition may be a maximum and/or minimumamount of financial assets that may be transferred into and/or out of agiven financial account, e.g., a transfer limit. In embodiments, such aboundary condition may apply to either or both incoming and outgoingtransfers of financial assets on anyone of accounts 300, 400 a, 400 b,and 400 c. In embodiments, the boundary condition may apply to any givenperiod of time, for example, one day, one week, or one month, to name afew. In embodiments, the boundary condition may apply to a limit oningoing and/or outgoing transfers occurring in a single transfer offinancial assets, for example, a maximum outbound transfer of $150,000USD, or a maximum inbound transfer of $250,000 USD, or a maximum dailytransfer limit of $500,000 USD, and may differ across differentaccounts.

In embodiments, a boundary condition may be a maximum number oftransfers of financial assets to be initiated over a given period oftime. In embodiments, such a boundary condition may correspond to alimit set by a financial institution, such as a maximum of six transferswith respect to a given financial account before associated fees areincurred.

In embodiments, a boundary condition may depend upon a differentvariable, for example, a minimum difference in interest rates associatedwith two financial accounts and/or a minimum difference in financialassets in two financial accounts before a transfer of financial assetsthere between is initiated.

Turning to FIG. 1, an exemplary embodiment of a financial managementsystem is generally designated 1000. Financial management system 1000may be an interconnection of elements that comprise at least a financialmanagement network 100, a client interface 200, and interfaces to afirst financial account, such as a checking account 300, and one or moresecond financial accounts, such as savings accounts 400 a, 400 b, 400 c.Although the presently-described exemplary embodiment includes threesavings accounts, it will be understood that, in embodiments, afinancial management system 1000 may be linked to any number of savingsaccounts and/or other types of financial accounts through theirassociated computer interfaces.

Financial management network 100, client interface 200, accountinterfaces 300, 400 a, 400 b, 400 c, and/or any component thereof, maybe interconnected along one or more electronic data networks 1100, forexample, a wired and/or wireless data communication system such as theWorld Wide Web, a mobile data network, and/or local intranet, to name afew. In embodiments, a financial management system may be aninterconnection of elements that comprise any number, combination,and/or separation of elements described above.

Financial management network 100 may include web servers, applicationservers and databases as described herein, for implementing a multi-tierweb application that includes access and security restrictions betweenthe web servers, application servers and databases. For example, theapplication servers and databases can be accessed on the internet onlyby system administrators using specialized software and virtual privatenetworks that communicate using SSL certificates with tightly controlledaccess lists.

As described further herein, financial management system 1000 isconfigured so that financial management network 100 periodicallyanalyzes changing conditions among the one or more of savings accounts400 a, 400 b, 400 c, and checking account 300 that may impact theoptimum allocation of funds among the accounts. For example, interestrates payable by the accounts, FDIC insurance limits, maximum/minimumaccount limits, transfer limits and the like may periodically change forsome or all of the accounts. Such changing conditions are periodicallymonitored by the financial management network 100 to determine theoptimal allocation of a user's financial assets among checking account300 and savings accounts 400 a, 400 b, 400 c to receive the benefit ofthe highest interest rates available subject to any or all of theconstraints described above in any combination or separation, subject toany and/or all of the boundary conditions described above in anycombination or separation. Such optimal allocation may be made inaccordance with a particular schedule or automatically when a changingcondition occurs that impacts on the optimal allocation.

The financial management network may then instruct one or more of theinterfaces for savings accounts 400 a, 400 b, 400 c to initiate atransfer of financial assets indirectly there between, through acorresponding crediting and debiting action on checking account 300 asan intermediary to achieve this optimized distribution of the user'sfinancial assets.

In an exemplary embodiment, this transfer of financial assets occurs asa two-step process: first, savings account 400 a is instructed toinitiate a transfer of financial assets M₁, into checking account 300(through a debiting action). In a separate, second step, savings account400 c is instructed to initiate a transfer of financial assets M₁ intosavings account 400 c from the checking account 300 (through a creditingaction). Thus, all transfers (in both directions) are initiated by thesavings accounts and do not require action on the part of the checkingaccount. Using this particular two-step arrangement in which thechecking account is passive permits savings of fees that might otherwisebe incurred by transfers initiated by the checking account and avoidsother potential limitations regarding the number and size of transfersthat may be invoked by the banks.

The above-described processes of financial management network 100 may beat least partially automated so that a user may attain the benefits ofan optimized allocation of his or her financial assets across savingsaccounts 400 a, 400 b, 400 c, without spending a substantially increasedamount of time and effort monitoring these accounts.

In embodiments, financial management system 1000 may include any numberof savings accounts. Accordingly, in embodiments, financial managementsystem 1000 may link a single savings account and a single checkingaccount. In embodiments, financial management system may include morethan one checking account. In embodiments, financial management system1000 may include any number of financial accounts, including, forexample, checking accounts, savings accounts, brokerage accounts ormoney market fund accounts in any combination or separation.

In the exemplary embodiment shown, checking account 300 may bemaintained by a traditional banking institution, and savings accounts400 a, 400 b, and 400 c may be maintained by respective online bankinginstitutions. Accordingly, checking account 300 may be a financialaccount with a low or zero value interest rate it, and savings accounts400 a, 400 b, and 400 c may be a financial account with respectiveinterest rates i₂, i₃, i₄ that are each greater than the interest ratei₁ of checking account 300. In this manner, financial assets stored insavings accounts 400 a, 400 b, and/or 400 c may be supplemented byinterest payments at a greater percentage than would be earned by acorresponding amount of financial assets stored in the checking account300 during a comparative interval of time. Interest rates i₂, i₃, i₄ mayeach be substantially similar to one another, may have different values,and/or may fluctuate over time so that interest rates i₂, i₃, and i₄, donot necessarily have a constant relative relationship. In embodiments,checking account 300 and savings accounts 400 a, 400 b, 400 c may bedifferent financial accounts at the same third party institution thathave different associated interest rates i₂, i₃, i₄. It will beunderstood that, in embodiments, accounts 300, 400 a, 400 b, 400 c maybe different types of financial accounts and may use differentcurrencies. For example, each account may be a non-commercial account, acommercial account, a trust account, an escrow account, a non-profit,foundation or endowment account, or any other type of account that canbe accessed by the financial management network 100 in accordance withthis disclosure.

Each of accounts 300, 400 a, 400 b, 400 c includes financial assets towhich a user/account holder has access, and to which other individualsor entities may have access when authorized by a user/account holder. Auser may include, for example, a single account owner, one or more jointaccount owners, or one or more persons acting on behalf of an at leastpartial account holder, such as a proxy or trustee, financial advisor,private wealth manager, and/or an automated system acting uponinstructions provided by a user, being one or more of the above, to namea few. For example, the user might be an individual, a couple, afinancial advisor administering the system on behalf of an individual ora couple, or a CFO or treasurer of a company who has authority to act onbehalf of that entity's accounts.

As shown, savings accounts 400 a, 400 b, 400 c are linked across datanetwork 1100 through checking account 300. Referring additionally toFIG. 2, checking account 300 is linked between each of accounts 400 a,400 b, 400 c so that checking account 300 may act as a hub through whichfinancial assets may be transferred indirectly between savings accounts400 a, 400 b, 400 c. The savings accounts may be viewed as connected tothe checking account hub as various spokes. By using such hub-and-spokearchitecture, rather than making transfers directly between savingsaccounts, the disclosed system is able to avoid limitations that may beimposed on transfers from savings account (e.g., certain bankingregulations in the United States currently limit savings accounts to nomore than 6 outbound transfers per month).

Furthermore, by using such hub-and-spoke architecture in which transfersare made through previously-verified ACH links between the checkingaccount at the hub and the savings accounts at the spokes, the presentlydisclosed system is highly secure. In accordance with this architectureand as disclosed herein, the financial management network 100 does notoriginate funds transfers, but only acts as agent for the user/accountholder, providing instructions on the user's behalf to the user'ssavings banks to make the funds transfers along ACH conduits that theuser has setup with each online account and whose security has beenpreviously verified by the user and the banks. For example, it is notpossible for someone who may breach other robust security measures builtinto the disclosed financial management system 1000 and/or financialmanagement network 100 to link their own online account and syphon fundsaway from the user/account holder, since the breaching party will not beable to complete the trial deposit verification procedures currently inplace by banks for confirming the secure linking together of newaccounts, since access to the user's checking account is also requiredto confirm trial deposits (or other mechanisms typically used to confirmrightful ownership of accounts).

Accordingly, financial assets may be transferred between savingsaccounts 400 a, 400 b, 400 c by using checking account 300 as anintermediary. For example, an amount of financial assets M, may betransferred between savings account 400 a and savings account 400 c in atwo-step process: in a first step, financial assets M₁, are transferredfrom savings account 400 a to checking account 300; in a separate,second step, financial assets M, are transferred to savings account 400c from checking account 300. A lapse in time between the first step andsecond step described above may be associated with, for example, thelength of time that the checking account 300 or an intermediary fundstransfer network, such as the ACH network or FedWire, takes to processthe transfer in the first step, along with the amount of time that thesystem described herein takes to i) confirm that the first step has beencompleted successfully and ii) refresh user account balances andrecalculate the required funds transfers for the second step, takinginto account any changes in relevant account balances between the firstand second step.

Each of accounts 300, 400 a, 400 b, 400 c may retain financial assets sothat a substantially large number of possible distributions of a user'sfinancial assets is possible. As described above, it may be desirable toredistribute financial assets among savings accounts 400 a, 400 b, 400c, for example, to gain the benefit of a higher interest rate offered onone account, or to help maintain the level of financial assets in someor all of the accounts above a minimum value or below a maximum value,for example, to stay below an insurance program limit, such as FDICinsurance, or to stay above a minimum balance requirement (either forthe avoidance of account fees or to keep an account open).

Accordingly, financial management network 100 is configured to implementan optimization algorithm to provide a user with the optimumdistribution of financial assets across savings accounts 400 a, 400 b,400 c and checking account 300 so that the user's financial assets infinancial management network 100 are eligible for the greatest amount ofinterest payments offered on savings accounts 400 a, 400 b, 400 c andchecking account 300, subject to the aforementioned constraints.

In embodiments, financial management network 100 may be at leastpartially automated so that financial management network 100 can sendinstructions to implement financial transfers between accounts 300, 400a, 400 b, 400 c without requiring direct input from a user. In suchembodiments, financial management network 100 may be governed by a setof rules or conditions chosen by the user and/or persons or entitiesauthorized by the user, including the system administrator. As describedfurther herein, financial management network may be provided with avariable level of automation so that a user is afforded a degree ofdirect control over the operation of financial management network 100.

Still referring to FIG. 1, client interface 200 is an access pointconfigured to transmit data between a user and at least financialmanagement network 100 along data network 1100. In embodiments, clientinterface 200 may additionally be configured to transmit data directlybetween a user and checking account 300 and/or savings accounts 400 a,400 b, and/or 400 c. In embodiments, client interface 200 may be, forexample, a desktop or terminal computer, or may be a mobile deviceincorporating a computer such as a smartphone, PDA, wearable computer,laptop computer, or tablet computer. It will be understood that anydevice capable of connecting to data network 1100 may be configurable asa suitable client interface.

Client interface 200 includes a display 210 that is configured toprovide data from financial management network 100 in a format visuallyaccessible to a user, such as letters, numbers, symbols, and/orgraphics, to name a few. In embodiments, display 210 may be, forexample, a video monitor, a screen, or a projector. Client interface 200also includes at least one input device 220 through which a user mayinput data to at least financial management network 100 along datanetwork 1100. In embodiments, input device 220 may be, for example, akeyboard, mouse, keypad, touchpad, voice recognition program, motionsensor and/or other input device capable of sending data to financialmanagement network 100 through data network 1100 in response to acorresponding physical input and/or visual input and/or audible input.In embodiments, a client interface 200 may include additional and/oralternative features for the receipt and input of data there through.Still further, in embodiments, the financial management network 100 mayprovide information and receive instructions via an API, for exampleconnected to the computer system of a financial advisor, rather than viahuman input. In embodiments, a display and input device may together beprovided on a client interface, for example, through one or morecapacitive touchscreens. In this regard, a user may access and/or inputinformation directly to financial management network 100, checkingaccount 300, and/or savings account 400, and/or may indirectly accessand/or input information to checking account 300 and/or savings account400 via financial management network 100 through client interface 200.

Turning to FIG. 3, financial management network 100 may comprise aproduct program 110, a credential data store 120, and rule data store130. In embodiments, financial management network 100 may include asingle data store, or any number, combination, and/or separation ofelements described above.

Product program 110 may be an application or software operable via oneor more processors 112. In embodiments, product program 110 may comprisea computing environment having one or more real and/or virtual dataservers to provide network-based services to a user, such as a cloudcomputing environment, and provides a hub that is connected betweencredential data store 120, rule data store 130, client interface 200,checking account 300, and savings accounts 400 a, 400 b, 400 c alongdata network 1100.

Referring additionally to FIG. 4A, product program 110 includes a visuallayer 114 that is transmitted through data network 1100 to at leastclient interface 200. Visual layer 114 may be, for example, anapplication layer or website configured to be displayed on display 210of client interface 200. In this manner, display 210 of client interface200 and visual layer 114 of product program 110 are together configuredto communicate to display data input and/or output by product program110 in a manner accessible to the user as described above.

Accordingly, visual layer 114 may include one or more indicia 116 thatmay include for example, letters, numbers, colors, patterns, and/orsymbols, to name a few. Visual layer 114 may also include one or moreinput fields 18 in which a user may input data through control device220, for example, letters, numbers, symbols, and/or markings such asradio buttons, check boxes, or text boxes. Data supplied from inputfields 118 are transmitted to product program 110 through data network1100.

Credential data store 120 and rule data store 130 are repositories ofdata connected to product program 110 along data network 1100. Either orboth of credential data store 120 and rule data store 130 may beconfigured as a database, for example, a relational database orkey-value data storage system. Credential data store 120 and/or ruledata store 130 may be supported on one or more network-basedenvironments that may comprise one or more virtual and/or physicalservers, for example, a cloud computing environment. Credential datastore 120 and rule data store 130 may be supported on a common cloudcomputing environment or separate cloud computing environments. Inembodiments, data associated with financial management system 1000 maybe stored on a single data store, two data stores as shown, or, inembodiments, any number of data stores. In embodiments, data associatedwith financial management system 1000 may be stored on multiple datastores, for example, for security purposes so that data iscompartmentalized to inhibit unauthorized access. In embodiments, datamay be transmitted to data stores 120, 130 by a user through clientinterface 200 or by another path through product program 110, forexample, data input by a user or system administrator or via an API.

Credential data store 120 may include data associated with informationcapable of accessing any of checking account 300, savings accounts 400a, 400 b, 400 c. For example, credentials such as account numbers,routing numbers, challenge questions that may be posed by an accountinterface and associated answers, login names, passwords, PIN codes,e-mail addresses, contact telephone numbers, digital certificates,and/or web cookies, to name a few of the credentials that may need to beprovided to gain access to a user's checking and/or savings accounts.

Accordingly, data stored on credential data store 120 may compriseconfidential information, for example, information deemed secure by auser so that only the user and/or user-approved individuals and/orentities that are intended to be privy to such information may begranted access. In embodiments, one or more electronic security measures122 may be incorporated into the architecture of credential data store120 and/or product program 110, and/or may be disposed upstream ofcredential data store 120 along data network 1100 to inhibitunauthorized access to information associated with data stored oncredential data store 120.

Rule data store 130 may include data that determines the configuration,scheduling, and/or sequence of operations of financial managementnetwork 100 with respect to accounts 300, 400 a, 400 b, and 400 c. Inthis manner, rule data store 130 may store data associated withinformation supplied by a user through client interface 200 in the formof, for example, rules, boundary conditions, schedules, limits, tasks,commands, applications, and/or action identifications, to name a few.

Data associated with information relating to boundary conditionsdescribed above with respect to one or more accounts 300, 400 a, 400 b,400 c may include, for example: i) a minimum account balance; ii) amaximum limit of financial assets in a financial account; iii) a maximumand/or minimum transfer limit of financial assets to be transferred in agiven financial transfer or within a specific period of time; iv) amaximum number of financial transfers that may be performed over a givenperiod; v) a minimum difference in interest rates required beforeinitiating a transfer of financial assets between financial accounts;and/or vii) a minimum difference in financial assets required toinitiate a transfer of financial assets between financial accounts, toname a few. All such boundary conditions may be set by a user, a user'sfinancial advisor, a financial institution, governmental or other bodyor by product program 110.

Data associated with information relating to a sequence of operations offinancial management network 100 may include, for example, a length oftime associated with initiating and/or restricting one or more actionsof product program 110, for example, the cessation of further transferof financial assets between savings accounts 400 a, 400 b, 400 c andchecking account 300, identifying the value of interest rates i₁, i₂,i₃, and/or, from information sources associated with, or independentfrom, third-party financial institutions, and/or providing data to auser through client interface 200, for example, information relating tochecking account 300 and/or savings accounts 400 a, 400 b, 400 c and/orprompting a user to input data through client interface 200.

In this manner, program product 110 is configured to take one or moreactions and/or restrict one or more actions on at least savings accounts400 a, 400 b, 400 c based at least in part upon data received from ruledata store 130. Such one or more actions may include the transfer offinancial assets from one or more savings accounts 400 a, 400 b, 400 cto checking account 300 and/or the transfer of financial assets to oneor more of savings accounts 400 a, 400 b, 400 c from checking account300.

In the exemplary embodiment shown, program product 110 instructs one ormore of savings accounts 400 a, 400 b, 400 c to initiate a transfer offinancial assets with respect to checking account 300. In this manner,program product 110 is configured to initiate the transfer of financialassets between savings accounts 400 a, 400 b, 400 c and checking account300 solely by initiating crediting and debiting actions on checkingaccount 300 from the perspective of the savings accounts 400 a, 400 b,400 c so that no financial transfers are required to be initiated fromchecking account 300. Financial transfers may be implemented via theAutomated Clearing House (ACH) network, or another method of electronicfunds transfer known by those skilled in the art of the presentdisclosure.

In this regard, financial management network 100 may be configured suchthat program product 110 may initiate and/or restrict one or moreactions on one or more of savings accounts 400 a, 400 b, 400 c based ondata stored in rule data store 130. In this manner, a set of rules maybe stored in rule data store 130 in advance of a financial transfer sothat the financial management network is at least partially automated toimplement financial transfers based on the rules in rule data store 130.In this manner, financial management network 100 is configured such thata user is not required to continuously monitor and/or implementfinancial transfers among accounts 300, 400 a, 400 b, 400 c. Such anautomated configuration allows financial management network 100 toprovide instructions for the implementation of a greater number offinancial transfers without direct user input than might be practicalfor a user to perform directly, and with greater discipline.Accordingly, financial management network 100 affords a user the benefitof an increased and/or finer control of the distribution of financialassets across accounts 300, 400 a, 400 b, 400 c, for example, tooptimize the amount of interest earned on the financial assets inaccounts 300, 400 a, 400 b, 400 c without requiring additional time oreffort by the user, and/or to ensure that financial assets aredistributed across accounts 300, 400 a, 400 b, 400 c to in a manner tobe maximally covered by one or more insurance programs such as FDIC.Additionally or alternatively, financial management network 100 mayafford a user such control to allocate the financial assets in accounts,300, 400 a, 400 b, 400 c in an optimized manner to take advantage ofother beneficial factors, for example, available insurance coverageand/or maintaining a checking account at target balance.

It will be understood that, in embodiments, a financial managementsystem may include a first financial account having a first interestrate and one or more additional financial accounts having respectiveinterest rates that are greater than the first interest rate. Afinancial management network may be associated with such financialmanagement systems so that financial assets may be transferred betweenthe first financial account and any or each of the other financialaccount(s) in any combination or separation as described above.

Referring additionally to FIG. 5, a process diagram of steps a userengages in to configure financial management system 1000 for use isillustrated in accordance with an exemplary embodiment of the presentdisclosure.

With additional reference to FIG. 4A, in a first step S101, a useraccesses the product program 110 through client interface 200 so that animage layer 114 of the product program can appear on display 210 torelay data to the user. A user may access product program 110, forexample, by entering a website URL into an internet browser, selecting ashortcut to such website URL via an icon on a smartphone, tabletcomputer, wearable computer or similar device, or initiating a softwareapplication.

In a second step S102, a user registers an account with product program110 by providing data to product program 110 through client interface200 over data network 1100. In embodiments, a user may provide data toproduct program 110 that is associated with information such as, forexample, an e-mail address, telephone number, username, password, and/orbiographical information such as name, address, and/or date of birth, toname a few, as well as personal demographic information such as age,occupation, income, approximate balance of financial assets, to name afew. The data provided by the user in step S202 is received by theproduct program 110 and transmitted to credential data store 120 overdata network 1100 so that a user thereafter may re-submit such data, ora portion thereof, through client interface 200 to access additionalfeatures of the product program 110. In embodiments, client interface200 may store such data, for example, in a web browser or local storagemedium, so that this data can be transferred from its stored location toproduct program 110 upon command by a user. In embodiments, this datamay be stored on a different data store.

In embodiments, second step S102 or another step in the configuration offinancial management system 1000 may include a user providing data toproduct program 110 through client interface 200 associated withinformation needed to setup an account at more than one financialinstitution and/or more than one account at a single financialinstitution. In this manner, financial management system 1000 may beconfigured to facilitate a user in registering, for example, formultiple financial accounts through a single, common application and/orsubstantially simplified registration process as compared to individualregistration processes associated with different financial institutionsand/or financial accounts.

With additional reference to FIG. 4B, in a third step S103, data isprovided to product program 110 that is associated with informationrelated to checking account 300. Such information may include, forexample, login name and password, account numbers, routing numbers,names, addresses, third party financial institution information, PINnumbers, answers to challenge questions, a contact telephone number oremail address, and/or other identification and/or access information, aswell as the client's desired target checking account balance. The dataprovided in step S203 may be stored in credential data store 120 and/orrule data store 130 in any combination or separation. In embodiments,such data may be associated with, for example, public information on thethird party financial institution associated with checking account 300and/or a history of one or more transactions or statuses of checkingaccount 300. In embodiments, such data may be associated withinformation relating to, for example, account numbers, routing numbers,PIN numbers, and/or other access information associated with checkingaccount 300.

With additional reference to FIG. 4C, in a fourth step S104, data isprovided to product program 110 that is associated with informationrelated to savings accounts 400 a, 400 b, 400 c. Such information may besubstantially similar to the types of information provided in step S103with regard to checking account 300, and may accordingly be stored incredential data store 120 and/or rule data store 130 in any combinationor separation as described above in step S104. In embodiments, a usermay supply information related to any of accounts 300, 400 a, 400 b, 400c described over the course of a single connection session with productprogram 110, or over any number of sessions. It will be understood thata process for configuring a financial management system for use willinclude any number of additional steps relating to the input of datarelating to identification and/or access information of a financialaccount in accordance with the number of financial accounts associatedwith the financial management system.

In a fifth step S105, data is provided to product program 110 that isassociated with information related to a rules for transferring assetsbetween checking account 300 and one or more of savings accounts 400 a,400 b, 400 c. Such rules may include, for example: i) a minimum ortarget account balance set by a user, financial institution, or otherbody; ii) a minimum or maximum limit of financial assets in a financialaccount set by a user, product program 110, a financial institution, orother body; iii) a maximum and/or minimum transfer limit of financialassets to be transferred in a given financial transfer or within aspecific period of time as set by a user, financial institution, orgovernmental or other body; iv) a maximum number of financial transfersthat may be performed over a given period as set by a user, financialinstitution, or governmental or other body; v) a minimum difference ininterest rates required before initiating a transfer of financial assetsbetween financial accounts as set by a user or by product program 110;and/or vii) a minimum difference in financial assets required beforeinitiating a transfer of financial assets between financial accounts asset by a user or product program 110, to name a few.

It will be understood that the data supplied to product program 110 mayin whole or in part be supplied by a source other than a user, forexample, a financial advisor or system administrator or by one or moredefault settings of product program 110. It will be understood that thesteps described above to configure financial management system 1000 maybe completed in any order, combination, or separation as describedabove. In embodiments, such a process may include additional and/oralternative steps.

Turning to FIG. 6A, and still referring to FIG. 1, an operational flowchart of a process of financial management system 1000 is illustrated inaccordance with an exemplary embodiment of the present disclosure. Itwill be understood that this operational flow chart may be applicable tofinancial management system 1000 or any other financial managementsystem based on the inventive concepts disclosed herein.

In a first step S201, input data is provided to product program 110 toinitiate an optimization process which will culminate in the transfer offinancial assets between one or more of savings accounts 400 a, 400 b,and 400 c and checking account 300. Input data may be providedsubstantially in real-time, for example, by a user or systemadministrator, and/or may be stored data in rule data store 130 to beinput under certain conditions, such as a scheduled task. For example, afirst instance of the optimization process described herein may beinitiated by a user through client device 200, and one or moresuccessive instances of the optimization process may be initiated byproduct program 110 as a scheduled task. If no data instructing productprogram 110 to initiate a transfer is supplied to product program 110,first step S201 may be repeated. In embodiments, a timer and/ortrue/false condition switch may be disposed between successiveiterations of first step S201 so that step S201 can only repeatfollowing a set interval of time and/or a predetermined condition ismet. A successive iteration of first step S201 may also be initiated bya user or system administrator on an ad hoc basis. For example, a clientor his/her financial advisor may access the financial management network100 to manually initiate an optimization in between scheduledoptimizations.

If an optimization process is to be initiated, product program 110retrieves data relating to one or more of accounts 300, 400 a, 400 b,and/or 400 c in a second step S202. Data relating to one or more ofaccounts 300, 400 a, 400 b, and/or 400 c may be transferred over datanetwork 1100 directly from a third party financial institution, and/oror may be supplied by another source such as an independent reportingservice or by the system administrator or via an API (applicationprogram interface). Data relating to one or more of accounts 300, 400 a,400 b, and/or 400 c may be associated with information such as, forexample, a corresponding interest rate i₁, i₂, i₃, i₄, and/or one ormore account balances.

In a third step S203, processor 112 of product program 110 applies oneor more rules from rule data store 130 to the data obtained from the oneor more of accounts 300, 400 a, 400 b, and/or 400 c in step S202 todetermine the optimal allocation of financial assets across financialaccounts 300, 400 a, 400 b, 400 c in a first-step optimizationalgorithm, as described further herein. Accordingly, step S203 yields aset of data relating to an allocation of financial assets that may bedifferent from the allocation of financial assets retrieved from stepS202.

In a fourth step S204, product program 110 determines the net amount oftransfers of financial assets across accounts 300, 400 a, 400 b, 400 cin order to arrive at the optimized allocation of financial assetsdetermined in step S203. As described above, in embodiments, financialmanagement system 1000 is configured to instruct transfers of financialassets in two steps: a first set of one or more transfers of financialassets from any one or more of savings accounts 400 a, 400 b, 400 c; anda second set of one or more transfers of financial assets into any oneor more of savings accounts 400 a, 400 b, 400 c from checking account300.

Accordingly, in a fifth step S205, product program 110 determines theoptimum set of transfers of financial assets to be initiated from one ormore of savings accounts 400 a, 400 b, 400 c, into checking account 300as described further herein.

In a sixth step S206, one or more of savings accounts 400 a, 400 b, 400c are instructed to initiate a transfer of financial assets intochecking account 300 in amounts determined in step S205. In embodiments,step S206 may include transfers from one or more of savings accounts 400a, 400 b, 400 c. In embodiments, step S206 may involve no transfers offinancial assets from any of savings accounts 400 a, 400 b, 400 c, asdescribed further herein.

In embodiments, instructions provided to savings accounts 400 a, 400 b,400 c may require the product program 110 to retrieve credentials fromcredential data store 120 to first access savings accounts 400 a, 400 b,400 c. In embodiments, checking account 300 may also be accessed in asimilar manner. In embodiments, one or more of accounts 300, 400 a, 400b, 400 c may involve more than one level or layer of credential input onthe part of product program 110, e.g., to satisfy multi-level ormulti-factor authentication protocols.

For example, some financial institutions and banks will recognize alogin from an unauthorized client computer and prompt the user/accountholder to provide further authentication in addition to the accountholder's username and password before allowing access to the accountholder's account. Such multi-factor authentication protocols may involvea bank's website indicating that it will be transmitting apre-determined or random authentication code to the user's cell phone byvoice or text, or by email to the user's email address, which cell phonenumber and email address the user or system administrator has previouslyentered in his user data on the bank's website when the account wasinitially set up. The user must then retrieve the transmitted code fromhis landline phone or cell phone or from his email provider within apreset limited time period and correctly enter the code on the bank'swebsite before being permitted to continue with the user login.

Comparably, a financial institution that manages one or more of accounts300, 400 a, 400 b, 400 c may detect access to an account by a neworigination point along data network 1100, e.g. a point other thanclient device 200, and may require a response, answer, and/or code to beinput in response to an inquiry before permitting connection of anaccount to the financial management network 100. Typically, such aresponse, answer, and/or code is provided by a user through clientdevice 200 or another device connected to the relevant account.

However, in such a case, product program 110 may be configured tocommunicate directly with one or more of accounts 300, 400 a, 400 b, 400c as a proxy for the user, for example, to receive and/or interpret(directly or via a third-party software service provider) uniqueauthentication codes, which may include alphanumeric characters and/orverbal responses and provide responses to questions or requestedauthentication codes which may include alphanumeric characters and/orverbal responses. Such communication between product program 110 and oneor more of accounts 300, 400 a, 400 b, 400 c may occur over one or moredata and/or voice networks or services, for example, e-mail, mobile,satellite, or land-lined telephone, and/or SMS, to name a few.Accordingly, product program 110 (in certain embodiments, via a selectedthird-party vendor) may be authorized, e.g., designated as a point ofcontact, to communicate directly with one or more of accounts 300, 400 a400 b, 400 c on behalf of the account holder, without intervention bythe account holder or user.

In particular, with respect to multi-factor authentication, thefinancial management network 100 implements unique and inventiveconcepts that permit it to act as proxy for the user and respond to anymulti-factor authentication that may be required for account access in away that does not require user intervention, while simultaneouslymaintaining rigid security measures to avoid unauthorized access to theuser's accounts by other parties. For this purpose, and to the extentnecessary, a limited power of attorney is provided by the user/accountholder to the financial management network 100 to permit theadministrators of the financial management network 100 to act as agentfor the user/account holder.

As described herein, the one or more processors of the financialmanagement network 100 perform multiple processes that permit an accountholder to access account information across his various accounts andthat permit the financial management network 100 to interface with banksholding the one or more user accounts, and in particular to permit thefinancial management network 100 to login as the user by using theuser's credentials stored in credential data store 120. Once logged intoa user's account, these processes can verify the accounts that arelinked, fetch balances, instruct transfers, prepare transactionhistories, retrieve 1099-INT tax forms or other client communicationsprovided by the associated banks.

To reduce latencies and provide a high performance processing framework,the financial management network 100 may be configured to run multipleprocesses in parallel. For example, multiple processes may be executedto provide headless web browsers that are used to navigate to andinteract with the websites of multiple banks at the same time, forexample to fetch balances, send funds transfer instructions, retrieveyear-end 1099-INT tax statements, and the like.

As noted above, processes may also be implemented by the financialmanagement network 100 to handle multi-factor authentication required bysome banks and financial institutions before permitting account access,without user intervention. To enable the financial management network100 to directly respond to a multi-factor authentication request withinthe user present, the following procedure is implemented.

When a user first links an account to the financial management network100, the user supplies their username and password to the financialmanagement network 100, and a process within the financial managementnetwork 100 controls a web browser and uses the user's credentials toattempt to log in to the bank's website holding the account.

If the bank responds to the log in attempt by issuing challengequestions or by requiring additional multi-factor authentication such asentry of a code sent to the user, then the financial management network100 will prompt the user for the additional information that the bankwebsite has requested.

For example, after a user links an American Express savings account tothe financial management network 100 for the first time, the financialmanagement network 100 will attempt to log in to the American Expresssavings account using the provided username and password.

If the web page indicates that additional multi-factor authentication isrequired, for example, input of a code that is sent to the user's cellphone or email address, then a process running within the productprogram 110 will present to the user the list of email addresses and/orphone numbers that is stored on the American Express site to which theauthentication code can be sent, and will prompt the user to select oneof the listed addresses or phone numbers. The process then passes theselected option to the American Express site so that the site sends thecode using the selected option. Once received by the user at hisselected address or phone number, the user enters the code into thefinancial management network 100, which then forwards the code to theAmerican Express site to respond to the multi-factor authenticationrequest and gain access to the site. Once the product program 110 hasaccess to the American Express site, it adds to the user data stored bythe site an additional multi-factor authentication endpoint, e.g., anadditional phone number or email address, that is accessible eitherdirectly by the product program 110 or, in some cases, via a third-partysoftware service provider, and to which subsequent authentication codesmay be sent.

Upon subsequent log ins by the product program 110 to the AmericanExpress site when the user is not present, the product program 110 canselect the additional multi-factor authentication endpoint that has beenentered in accordance with the foregoing description, e.g., a phonenumber known to the product program 110, which the product program 110(or third-party software service provider) can then monitor for thetransmitted code. Accordingly, once the additional multi-factorauthentication endpoint has been added, the product program 110 canrespond directly to multi-factor authentication requests withoutrequiring user intervention or user presence, and gain access to theuser's account to perform various transactions, as discussed herein, tooptimize the user's financial assets among the linked accounts.

To enhance security, the credential data store 120 is formed as anencrypted key/value database to protect the users' sensitive data whichmay include email addresses, user names, passwords, account numbers, PINnumbers, security questions and answers, and the like.

In some embodiments, data is encrypted before it is passed to thecredential data store 120, and the data is further encrypted incredential data store 120 before being stored.

To further enhance security and protect against unauthorized acts thatmay compromise critical operations, the financial management system 100may, through product program 110 or through other means, implement atwo-man rule algorithm, for example as may be implemented using Shamir'sSecret Sharing algorithm, to require that any such critical operationsbe authorized by at least two persons having appropriate authority.

Reverting back to FIG. 6A, in a seventh step S207, product program 110retrieves data relating to one or more of accounts 300, 400 a, 400 b,and/or 400 c. Data relating to one or more of accounts 300, 400 a, 400b, and/or 400 c may be transferred over data network 1100 directly froma third party financial institution, and/or may be supplied by anothersource such as an independent reporting service, or by the systemadministrator. Data relating to one or more of accounts 300, 400 a, 400b, and/or 400 c may be associated with information such as, for example,an interest rate i₁, i₂, i₃, i₄, and/or one or more account balances.Accordingly, step S207 is substantially similar to step S202 describedabove.

Step S207 is performed again after the transfers of financial assets instep S206 because one or more conditions of any of accounts 300, 400 a,400 b, 400 c may have changed following step S206. In particular, thetransfers of financial assets initiated in step S206 may take a periodof time to be processed, for example, one or more days, so thatintervening conditions may have occurred, for example, a change in oneor more of interest rates i₁, i₂, i₃, a change in the amount offinancial assets in an account such as checking account 300 due to, forexample, a deposit or withdrawal, or another change in a conditionaffecting one or more of accounts, 300, 400 a, 400 b, 400 c, forexample, a change in the FDIC insurance limit or other user-setconstraints such as maximum, minimum or target account balances.

In an eighth step S208, a second-step optimization algorithm is appliedto the information gathered in step S207 to ensure that the transfers offinancial assets into savings accounts 400 a, 400 b, 400 c originallydetermined in step S204 will satisfy the rules in rule data store 130.Accordingly, the second step optimization algorithm applied in step S208is similar to the first-step optimization algorithm applied in stepS203, but relates to optimizing the second-step transfers into one ormore of savings accounts, 400 a, 400 b, 400 c originally determined instep S203.

If no conditions affecting one or more of accounts, 300, 400 a, 400 b,400 c have occurred since the first-step financial transfers wereinitiated in step S206, the second-step financial transfers may proceedas originally determined in step S204. However, if one or moreconditions affecting one or more of accounts, 300, 400 a, 400 b, 400 chave occurred in the interim, the second-step optimization algorithm mayadjust the second-step financial transfers to compensate for thesechanged conditions according to the rules in rule data store 130. Inthis manner, steps S207 and S208 together serve as a verification and/oradjustment of the second-step financial transfers originally determinedin step S204.

In a ninth step S209, one or more of savings accounts 400 a, 400 b, 400c are instructed to initiate a transfer of financial assets out fromchecking account 300 in amounts determined in step S208. In embodiments,step S209 may include transfers into one or more of savings accounts 400a, 400 b, 400 c from checking account 300. In embodiments, step S209 mayinvolve no transfers of financial assets into any of savings accounts400 a, 400 b, 400 c from checking account 300, for example, due to alack of available financial assets that may be determined in step S208due to a changed condition of one or more of accounts 300, 400 a, 400 b,400 c between steps S206 and S207 or due to changes in interest rates orother user-set constraints.

In a tenth step S210, the process may terminate following the lastinstructed financial transfer in step S209 and confirmation that therecipient accounts have received their intended transfers. For example,the financial management network 100 may periodically (e.g., daily)check the account balances and account activity in the recipientaccounts to confirm that the intended transfers have been completed. Inembodiments, a timer and/or true/false condition switch may be disposedbetween successive iterations of step S210 and step S201 so that stepS201 can only repeat following a set interval of time and/or apredetermined condition is met after step S210 is complete. Inembodiments, a user or system administrator may manually trigger anotheroptimization before such interval or predetermined condition is met.

Turning to FIG. 6B, the first-step optimization algorithm shown in stepS203 of FIG. 6A will be described in detail according to an exemplaryembodiment of the present disclosure.

In a first step S203 a of the first-step optimization algorithm, theproduct program 110 determines the available financial assets foroptimization by deducting from the sum of the account balances in stepS202 (FIG. 6A) the minimum account balances for each of accounts 300,400 a, 400 b, 400 c according to the rules stored in rule data store130. Accordingly, in step S203 a, product program 110 determines theremaining financial assets in all of accounts 300, 400 a, 400 b, 400 cafter the respective minimum account balances have been satisfied. Inembodiments, minimum account balances may additionally or alternativelybe input by a user through client device 200, a system administrator, orby a default setting of product program 110.

In a second step S203 b, product program 110 determines whethersufficient financial assets are available for optimization. Inembodiments, a positive, nonzero value determined in step S203 a may besufficient for optimization. In embodiments, sufficient financial assetsfor optimization may be determined by a rule in rule data store 130, forexample, a minimum difference in financial assets between two givenaccounts for a transfer of financial assets to occur. If sufficientfinancial assets are unavailable for optimization, the process may beterminated.

If sufficient financial assets are available for optimization, productprogram 110 may proceed to rank order savings accounts 400 a, 400 b, 400c to determine the priority order in which available financial assetswill be transferred for optimization in a third step S203 c. Savingsaccounts 400 a, 400 b, 400 c may be rank ordered by interest rate,descending from the highest interest rate. In embodiments, savingsaccounts 400 a, 400 b, 400 c may be rank ordered by a different factor.

In a fourth step S203 d, two or more of savings accounts 400 a, 400 b,400 c may have an identical value for a factor by which savings accounts400 a, 400 b, 400 c are rank ordered, for example, an identical interestrate. In such embodiments, financial management network 100 may utilizesubjective and/or objective tiebreaker factors or rules stored in ruledata store 130 to determine which of the one or more savings accountsoffering the same interest rate should be given priority for a givenfinancial transfer. Such factors may include, for example, objective orsubjective customer service ratings, associated fees and/or account ortransfer limits, and/or historical interest rates or rate volatility, toname a few.

In embodiments, savings accounts 400 a, 400 b, 400 c may be rank-orderedby a different factor, or by a combination of factors that may or mayinclude interest rates as described above. Such different factors may besubjective and/or objective, for example, so that one account may berank-ordered lower than another account having a higher interest rate.

Once savings accounts 400 a, 400 b, 400 c have been rank ordered, thefirst-step optimization algorithm determines if it is possible totransfer all the available financial assets for optimization determinedin step S203 a into the first rank-ordered savings account according tothe rules in rule data store 130 in a fifth step S203 e. In an exemplaryembodiment, such rules may comprise a maximum account balance for agiven account, for example, the FDIC insurance limit and/or auser-defined maximum account balance. In other embodiments, the rulesapplied from rule data store 130 may include, for example: for example:i) a maximum account balance; ii) a maximum limit of financial assets ina financial account, such as the maximum FDIC insurance limit; iii) amaximum and/or minimum transfer limit of financial assets to betransferred in a given financial transfer or within a specific period oftime; iv) a maximum number of financial transfers that may be performedover a given period; v) a minimum difference in interest rates requiredbefore initiating a transfer of financial assets between financialaccounts; and/or vii) a minimum difference in financial assets requiredto initiate a transfer of financial assets between financial accounts,to name a few, in any order, separation, and/or combination. All suchrules may be set by a user, a user's financial advisor, a financialinstitution, or governmental or other body, or product program 110.

Accordingly, in step S203 e, the first-step optimization algorithmdetermines whether the first-ranked savings account can receive allavailable financial assets for optimization under the rules in rule datastore 130. If product program 110 determines that the first-rankedsavings account can receive all available financial assets foroptimization, the process proceeds to step S204 (FIG. 6A).

If the first-ranked savings account cannot by itself receive allavailable financial assets for optimization, the process proceeds to asixth step S203 f in which product program 110 determines the maximumamount of available financial assets for optimization that can betransferred into the first-ranked savings account, and any remainingavailable financial assets for optimization thereafter. Product program110 then determines whether the second-ranked savings account canreceive all available financial assets for optimization under the rulesin rule data store 130. If product program 110 determines that thesecond-ranked savings account can receive all available financial assetsfor optimization, the process proceeds to step S204 (FIG. 6A).

If the second-ranked savings account cannot by itself receive allremaining available financial assets for optimization, the processproceeds to a seventh step S203 g, in which product program 110determines the maximum amount of available financial assets foroptimization that can be transferred into the second-ranked savingsaccount, and any remaining available financial assets for optimizationthereafter. Product program 110 then determines whether the third-rankedsavings account can receive all remaining available financial assets foroptimization under the rules in rule data store 130. If product program110 determines that the third-ranked savings account can receive allavailable financial assets for optimization, the process proceeds tostep S204 (FIG. 6A).

In this manner, financial management system 1000 provides anoptimization process with a “waterfall” configuration that firstdetermines an available pool of financial assets for optimization, andproceeds to prepare to instruct a transfer of the maximum amount offinancial assets allowed by a set of boundary conditions sequentiallyinto accounts that are rank-ordered, for example, by interest rate. Itwill be understood that, in embodiments, steps 203 e, 203 f, 203 g, maycontinue corresponding to the number of savings accounts included in afinancial management system.

If the third-ranked savings account cannot by itself receive allremaining available financial assets for optimization, the processproceeds to an eighth step S203 h, in which product program 110determines the maximum amount of available financial assets foroptimization that can be transferred into the third-ranked savingsaccount, and that any remaining available financial assets foroptimization thereafter will be transferred into the first-rankedsavings account. In this manner, step S203 h may override a maximumaccount limit applied in step S203 e. In embodiments, product program110 may be configured such that the available financial assets foroptimization do not exceed the maximum allowable account balances ofsavings accounts 400 a, 400 b, 400 c according to the rules in rule datastore 130, such that any excess funds would be transferred to (or remainwithin) checking account 300. The process then proceeds to step S204(FIG. 6A).

Turning to FIG. 6C, the first-step transfers of financial assets shownin step S205 of FIG. 6A will be described in detail according to anexemplary embodiment of the present disclosure.

Following the determination in step S204 (FIG. 6A) of the net amount offinancial assets to be transferred into checking account 300 for thefirst step of optimization, product program 110 proceeds to determinethe available amount of financial assets in savings accounts 400 a, 400b, 400 c for transfer into checking account 300 in a first step S205 a.Product program 110 makes such a determination by deducting from thesavings account balances retrieved in step S202 (FIG. 6A) the minimumaccount balances for each of accounts 400 a, 400 b, 400 c according tothe rules stored in rule data store 130. Accordingly, in step S203 a,product program 110 determines the remaining financial assets inaccounts 400 a, 400 b, 400 c after the respective minimum accountbalances have been satisfied. In embodiments, minimum account balancesmay additionally or alternatively be input by a user through clientdevice 200, a system administrator, or by a default setting of productprogram 110. If no financial assets are available for transfer in thefirst-step of optimization, the process may proceed directly to stepS208 (FIG. 6A).

If sufficient financial assets are available for transfer into checkingaccount 300 in the first-step of optimization, product program proceedsto determine the priority order in which available financial assets willbe transferred out of savings accounts 400 a, 400 b, 400 c. The priorityorder for the transfer of financial assets into checking account 300 maybe the reverse of the rank order determined in step S203 c (FIG. 6B) sothat financial assets are first pulled from the lowest-ranked savingsaccount. In embodiments, savings accounts 400 a, 400 b, 400 c may beordered by a different factor.

In a third step S205 c, product program 110 proceeds to determine if itis possible to transfer all the available financial assets for thefirst-step of optimization from the third rank-ordered savings accountaccording to the rules in rule data store 130 in a fifth step S203 e. Inan exemplary embodiment, such rules may comprise a minimum accountbalance for the third-rank ordered savings account, for example, auser-defined or financial institution-defined minimum account balance.In other embodiments, the rules applied from rule data store 130 mayinclude, for example: for example: i) a minimum account balance; ii) aminimum limit of financial assets in a financial account, such as themaximum FDIC insurance limit; iii) a maximum and/or minimum transferlimit of financial assets to be transferred in a given financialtransfer or within a specific period of time; iv) a maximum number offinancial transfers that may be performed over a given period; v) aminimum difference in interest rates required before initiating atransfer of financial assets between financial accounts; and/or vii) aminimum difference in financial assets required to initiate a transferof financial assets between financial accounts, to name a few, in anyorder, separation, and/or combination. All such rules may be set by auser, a user's financial advisor, a financial institution, orgovernmental or other body, or by product program 110.

Accordingly, in step S205 c, the first-step optimization algorithmdetermines whether the third-ranked savings account can send allavailable financial assets required for transfer in the first step ofoptimization under the rules in rule data store 130. If product program110 determines that the third-ranked savings account can send allavailable financial assets required for transfer in the first step ofoptimization, the process proceeds to step S206 (FIG. 6A).

If the third-ranked savings account cannot by itself send all availablefinancial assets required for optimization by itself, the processproceeds to a fourth step S203 d in which product program 110 determinesthe maximum amount of available financial assets that can be transferredout of the third-ranked savings account, and any remaining availablefinancial assets for transfer into checking account 300 thereafter.Product program 110 then determines whether the second-ranked savingsaccount can send all remaining financial assets required for transferunder the rules in rule data store 130. If product program 110determines that the second-ranked savings account can send all availableremaining financial assets for transfer, the process proceeds to stepS206 (FIG. 6A).

If the second-ranked savings account cannot by itself send all remainingavailable financial assets required for optimization by itself, theprocess proceeds to a fifth step S203 e, in which product program 110determines the maximum amount of remaining financial assets for transferthat can be transferred from the second-ranked savings account, and anyremaining available financial assets required for optimizationthereafter.

In a sixth step, product program 110 then determines that the remainingfinancial assets for transfer will be transferred out of thefirst-ranked savings account. The process then proceeds to step S206(FIG. 6A).

Turning to FIG. 6D, the second-step optimization algorithm shown in stepS208 of FIG. 6A will be described in detail according to an exemplaryembodiment of the present disclosure.

The second-step optimization algorithm begins in a similar manner to thefirst-step optimization algorithm described above, in that productprogram 110 determines the available amount of financial assets fortransfer in the second-step of optimization (S208 a); whether sufficientfinancial assets are available for the transfers in the second step ofoptimization (S208 b); rank-orders the savings accounts 400 a, 400 b,400 c (S208 c); and determines whether any tie-breaking rules need to beapplied to complete the rank-ordering of savings accounts 400 a, 400 b,400 c (S208 d). Accordingly, and as described above, the second-stepoptimization algorithm verifies the preliminary determination offinancial assets to be transferred into one or more of savings accounts400 a, 400 b, 400 c from checking account 300 in step S204 because oneor more conditions of any of accounts 300, 400 a, 400 b, 400 c, or suchother conditions described below, may have changed following step S206.In particular, the transfers of financial assets initiated in step S206may take a period of time to be processed, for example, one or moredays, so that intervening conditions may have occurred, for example, achange in one or more of interest rates i₁, i₂, i₃, a change in theamount of financial assets in an account such as checking account 300due to, for example, a deposit or withdrawal, or another change in acondition affecting one or more of accounts, 300, 400 a, 400 b, 400 c,for example, a change in the FDIC insurance limit or a change in usersettings.

In the event that no intervening conditions have affected accounts 300,400 a, 400 b, 400 c, the second step transfers may proceed in the manneroriginally determined in step S204 (FIG. 6A). However, if one or moreconditions of one or more of accounts 300, 400 a, 400 b, 400 c havechanged since the determination in step S204, product program 110proceeds to adjust for such changes in the manner described below.

In a fifth step S208 e, the second-step optimization algorithmdetermines if it is possible to transfer all the available financialassets for optimization determined in step S203 a into the firstrank-ordered savings account according to the rules in rule data store130 in a fifth step S203 e. In an exemplary embodiment, such rules maycomprise a maximum account balance for a given account, for example, theFDIC insurance limit and/or a user-defined maximum account balance. Inother embodiments, the rules applied from rule data store 130 mayinclude, for example: for example: i) a maximum account balance; ii) amaximum limit of financial assets in a financial account, such as themaximum FDIC insurance limit; iii) a maximum and/or minimum transferlimit of financial assets to be transferred in a given financialtransfer or within a specific period of time; iv) a maximum number offinancial transfers that may be performed over a given period; v) aminimum difference in interest rates required before initiating atransfer of financial assets between financial accounts; and/or vii) aminimum difference in financial assets required to initiate a transferof financial assets between financial accounts to name a few, in anyorder, separation, and/or combination. All such rules may be set by auser, a user's financial advisor, a financial institution, orgovernmental or other body, or by product program 110.

Accordingly, in step S208 e, the first-step optimization algorithmdetermines whether the first-ranked savings account can receive allavailable financial assets for optimization under the rules in rule datastore 130. If product program 110 determines that the first-rankedsavings account can receive all available financial assets foroptimization, the process proceeds to step S209 (FIG. 6A).

If the first-ranked savings account cannot by itself receive allavailable financial assets for optimization by itself, the processproceeds to a sixth step S208 f in which product program 110 determinesthe maximum amount of available financial assets for optimization thatcan be transferred into the first-ranked savings account, and anyremaining available financial assets for optimization thereafter.Product program 110 then determines whether the second-ranked savingsaccount can receive all available financial assets for optimizationunder the rules in rule data store 130. If product program 110determines that the second-ranked savings account can receive allavailable financial assets for optimization, the process proceeds tostep S209 (FIG. 6A).

If the second-ranked savings account cannot by itself receive allremaining available financial assets for optimization by itself, theprocess proceeds to a seventh step S208 g, in which product program 110determines the maximum amount of available financial assets foroptimization that can be transferred into the second-ranked savingsaccount, and any remaining available financial assets for optimizationthereafter. Product program 110 then determines whether the third-rankedsavings account can receive all remaining available financial assets foroptimization under the rules in rule data store 130. If product program110 determines that the third-ranked savings account can receive allavailable financial assets for optimization, the process proceeds tostep S209 (FIG. 6A).

If the third-ranked savings account cannot by itself receive allremaining available financial assets for optimization by itself, theprocess proceeds to an eighth step S208 h, in which product program 110determines the maximum amount of available financial assets foroptimization that can be transferred into the third-ranked savingsaccount, and that any remaining available financial assets foroptimization thereafter will be transferred into the first-rankedsavings account. In this manner, step S203 h may override a maximumaccount limit applied in step S208 e. In embodiments, product program110 may be configured such that the available financial assets foroptimization do not exceed the maximum allowable account balances ofsavings accounts 400 a, 400 b, 400 c according to the rules in rule datastore 130, such that any excess funds would remain in checking account300. The process then proceeds to step S209 (FIG. 6A).

In the manner described above, the optimization algorithm of financialmanagement network 1000 is configured to adjust for changing conditionsthat may affect one or more of accounts 300, 400 a, 400 b, 400 c.Accordingly, if such an adjustment results in one or more instructedfinancial transfers to be constrained by one or more boundaryconditions, for example, transfer limits, one or more optimizationalgorithms or processes may need to be run in order to fully optimize auser's financial assets across accounts 300, 400 a, 400 b, 400 c. Suchadditional optimization algorithms may be run immediately, after aspecific period of time has elapsed, or the system may wait until thenext regularly-scheduled optimization.

In other embodiments, the instructions to transfer funds betweenaccounts 300, 400 a, 400 b, and 400 c may be repeated in the midst ofthe optimization to overcome boundary conditions (such as maximum dailytransfer limits) rather than waiting until the end to re-run the entireoptimization again. For example, if the financial management network 100determines that a transfer of $500,000 is required, but the dailytransfer limit is $250,000, the financial management network 100 mayperform two transfers of $250,000 each in succession on the same or onsubsequent days, as part of the first or second step transfer process,rather than repeat the entire optimization process just to effect thesecond transfer of $250,000.

Referring additionally to FIGS. 4C and 4D, an exemplary embodiment ofthe application of the optimization algorithm described above isillustrated as seen by a user on the image layer 114. In the exemplaryembodiment shown, the optimization algorithm determines the optimizeddistribution of the user's assets by generating a rank order of one ormore savings accounts according to relative interest rates. Inembodiments, image layer 114 may be configured to display relativeinterest rates of savings accounts other than, or in addition to,savings accounts in which a user has financial assets.

As shown in the exemplary embodiment of FIG. 4C, account 1, account 2,account 3, account 4, and account 5 are listed in descending orderaccording to their respective interest rates. However, as shown, account1 and account 2 have an identical interest rate of 0.90%, and account 3and account 4 have an identical interest rate of 0.85%. In suchinstances, financial management network 100 may utilize subjectiveand/or objective factors to determine which of the one or more savingsaccounts offering the same interest rate should be given priority forfinancial transfers. Such factors may include, for example, objective orsubjective customer service ratings, associated fees and/or account ortransfer limits, and/or historical interest rates or interest ratevolatility, to name a few. Such factors may be input into rule datastore 130, for example, by a system administrator. In the exemplaryembodiment shown, account 1 is given priority over account 2 becauseaccount 1 does not impose a limit on account balances, whereas account 2limits account balances to a maximum of $1,000,000. In this manner, theoptimization algorithm is operable to distribute an amount of financialassets across two or more accounts so that the financial assets aredeposited into a highest-ranked financial account that offers thecombination of highest rates and least restrictive policies, and/or intoa descending hierarchy of financial accounts subject, to rules appliedby product program 110 as described above. In embodiments, theoptimization algorithm or display/list of accounts may prioritizefinancial accounts according to a different factor.

Turning to FIG. 4D, another exemplary embodiment of a financialmanagement system is illustrated, and includes a checking account 500linked between a first, second, third, and fourth savings account 600 a,600 b, 600 c, 600 d, respectively. Once the optimization algorithm hasdetermined the optimized allocation of financial assets across availablesavings accounts, the product program 110 instructs savings accounts 600a, 600 b, 600 c, and/or 600 d to initiate transfers of financial assetsin one or more steps in series. In the exemplary embodiment shown, theoptimization algorithm has determined that a total of $125.33 USD shouldbe transferred into checking account 500 from savings accounts 600 a and600 b, and a total of $8,763.52 USD should be transferred into savingsaccounts 600 c and 600 d from checking account 500. In this manner, theoptimization algorithm has determined that financial assets in theamount of $8,763.52 USD should be transferred into savings accounts 600c and 600 d, for example, to take advantage of a higher interest rateassociated with those savings accounts, and that a portion ($125.33 USD)of these financial assets should be removed from savings accounts 600 aand 600 b through checking account 500, for example, due to a lowerinterest rate associated with those savings accounts. The optimizationalgorithm has also determined the relative amounts of financial assetsto be transferred from each of savings accounts 600 a ($0.31) and 600 b($125.02 USD) for the transfer of $125.33 USD into checking account 500,and the relative amounts of financial assets to be transferred to eachof savings accounts 600 c ($3,558.78) and 600 d ($5,204.74) inaccordance with various boundary conditions determined by rules storedin rule data store 130 or otherwise provided through product program110, for example: i) a minimum account balance; ii) a maximum limit offinancial assets in a financial account; iii) a maximum and/or minimumtransfer limit of financial assets to be transferred in a givenfinancial transfer or within a specific period of time; iv) a maximumnumber of financial transfers that may be performed over a given period;v) a minimum difference in interest rates required before initiating atransfer of financial assets between financial accounts; and/or vii) aminimum difference in financial assets required to initiate a transferof financial assets between financial accounts to name a few. All suchrules may be set by a user, a user's financial advisor, a financialinstitution, or governmental or other body or by product program 110.The optimization algorithm has also determined that the net transfer offunds out of checking account 500 ought to be positive, reflecting thefact that the balance of financial assets in checking account 500immediately prior to the initiation of the optimization exceeded apreviously specified desired minimum or target balance for such checkingaccount 500.

In accordance with the embodiments described above, the transfers occurin two separate steps: in a first step, an amount of $0.31 USD isinstructed to be transferred from savings account 600 a to checkingaccount 500 in parallel with a transfer of $125.02 USD from savingsaccount 600 b to the same checking account 500; in a second step, anamount of $3,558.78 USD is instructed to be transferred into savingsaccount 600 c from checking account 500 in parallel with a transfer of$5,204.74 USD into savings account 600 d from checking account 500. Asdescribed above, the transfers illustrated in the second step aresubject to a second-step optimization algorithm as a check against achanged property of one or more of accounts 500, 600 a, 600 b, 600 c,600 d, for example, a change in account limits, a change in the amountof financial assets disposed in an account, a change in the FDIC maximuminsurance limit, and/or a change in interest rates associated withsavings accounts 600 a, 600 b, 600 c, 600 d.

It will be understood that any point between or during any of the stepsdescribed above, product program 110 may provide to a user throughclient interface 200 information relating to the processes describedabove substantially in real-time or with any amount of delay, forexample the status of each transfer, confirmation codes and/or numbersrelating to a transfer of financial assets between any of the accountsdescribed above.

It will be understood that the steps described above are exemplaryaccording to the present disclosure, and are not intended to belimiting. A financial management network may include greater, fewer,and/or alternative steps to those disclosed above.

In embodiments, financial management system 1000 may be configured toimplement a truncated, extended, and/or modified version of theoptimization process described above, for example, so that differentvariables of the optimization algorithm may be optionally input by theuser or by product program 110. In an exemplary embodiment, a user maydesignate an amount of financial assets to be optimally allocated intosavings accounts 400 a, 400 b, and 400 c from checking account 300.Accordingly, with additional reference to FIG. 4C, visual layer 114 mayprovide one or more inputs 119 to a user to designate such an amount offinancial assets to be transferred, With reference to FIG. 6D, productprogram 110 may then proceed to optimize the distribution of thefinancial assets from checking account 300 designated by the user in themanner described above. In this manner, financial management system 1000is configured to instruct an automated or intelligent transfer of fundsfrom checking account 300 into savings accounts 400 a, 400 b, and/or 400c from checking 300 in an optimized manner.

In another embodiment, and with reference to FIG. 6C, a user maydesignate an amount of financial assets for product program 110 toinstruct to be transferred from one or more of savings accounts 400 a,400 b, 400 c into checking account 300 in an optimized manner. In thismanner, a user may directly supply to product program 110 the amount offinancial assets to be transferred from one or more of savings accounts400 a, 400 b, 400 c into checking account 300, which may otherwise bedetermined by product program 110 as the “first-step” transfers in stepS204 (FIG. 6A). Once a user has supplied the amount of financial assetsto be instructed for transfer into checking account 300, product program110 institutes steps S205 a through S205 e as shown in FIG. 6C.

Similarly, in another embodiment, and with reference to FIG. 6D, a usermay designate an amount of financial assets for product program 110 toinstruct to be transferred into one or more of savings accounts 400 a,400 b, 400 c from checking account 300 in an optimized manner. In thismanner, a user may directly supply to product program 110 the amount offinancial assets to be transferred into one or more of savings accounts400 a, 400 b, 400 c, from checking account 300 which may otherwise bedetermined by product program 110 as the “second-step” transfers in stepS208 (FIG. 6A). Once a user has supplied the amount of financial assetsto be instructed for transfer into savings accounts 400 a, 400 b, 400 c,product program 110 institutes steps S208 a through S208 h as shown inFIG. 6D.

In another embodiment, the product program 110 determines an optimizeddistribution of financial assets across accounts 300, 400 a, 400 b, 400c, but does not automatically effect transfers of the funds throughfinancial management network 100. Rather, a user may opt to implementthe financial transfers necessary to achieve such a distribution withoutusing financial management network 100, for example, by implementing oneor more electronic funds transfers among accounts 300, 400 a, 400 b, 400c, by for example, ACH, wire transfer, credit transfer, or anothermodality of electronic funds transfer.

While the financial management network 100 in exemplary embodiments hasbeen described as optimizing financial assets among accounts by havingone checking account acting as the hub and multiple savings accounts onthe spokes, by using the inventive concepts described herein, financialsystems that have different hub-spoke configurations may also beimplemented and the distribution of financial assets optimized amongtheir accounts. For example, the financial management system 1000 mayalso include configurations in which there may be more than one accountat the hub of the system.

For example, funds may be moved and optimized between a brokerageaccount and a checking account that both act as passive accounts formingthe hub of the system and other accounts on the spokes that initiatetransfers of funds into and request transfers of funds out from such twohub accounts. In such embodiment, the user may be able to set twodifferent target balances for the respective checking and brokerageaccounts.

Based on the inventive concepts disclosed herein, in such systems havingtwo or more accounts at the hub, transfers may be effected automaticallybetween these hub accounts as well as between the hub accounts and otheraccounts on the spokes of the financial management system 1000 tooptimize the financial return among all of the accounts based uponrequests initiated at the spoke accounts for transfers into and out ofthe hub accounts.

In other embodiments, transfers between the multiple hub accounts (forexample, a checking account and a brokerage account) may be initiatedautomatically, or manually by a user, as a means of moving funds betweenthe two hub accounts via transfers to and/or from the accounts on thespokes (for example, online savings accounts.) As a result of theinventive concept described herein, funds may be transferred out of oneof the hub accounts in an amount that would otherwise exceed the dailytransfer limits imposed by that account, since the transfer is effectedas an ACH credit to the spoke account, rather than as an outboundtransfer from the hub account.

In embodiments, transfers of financial funds may occur indirectlybetween savings accounts through an intermediary checking account asdescribed above, or a user may opt, either within or without financialmanagement network 100, to transfer financial assets directly betweensavings accounts without passing through a checking account. In suchembodiments, ACH, or a modality of electronics fund transfer other thanACH, such as wire transfer or credit transfer, may be advantageous aswire transferred- or credit-transferred financial assets are processedsubstantially in real-time as compared to ACH, which typically occursover a two-to-three day period. Because such transfers may beaccompanied by a fee, such methods may be beneficial in embodimentswhere associated fees are relatively small relative to the amount offinancial assets being transferred and the potential for enhancedinterest income on these assets.

While this invention has been described in conjunction with theembodiments outlined above, many alternatives, modifications andvariations will be apparent to those skilled in the art upon reading theforegoing disclosure. Accordingly, the exemplary embodiments of theinvention, as set forth above, are intended to be illustrative, notlimiting. Various changes may be made without departing from the spiritand scope of the invention, which is defined by the following claims.

What is claimed:
 1. A method for permitting a third-party entity to gainaccess, in a secure manner, to an online account held by an accountholder that is secured by a multi-factor authentication protocol,comprising the following steps performed by the third-party entity:collecting the account holder's credentials; encrypting the accountholder's credentials using one or more processors; storing the accountholder's encrypted credentials using one or more processors, wherein theencrypted credentials are stored in a data store; verifying the accountholder's credentials by accessing, via one or more processors, theonline account using the account holder's credentials; receiving amulti-factor authentication request from the online account, themulti-factor authentication request indicating that a response isrequired from the account holder before further access to the onlineaccount is granted; prompting the account holder for a response andreceiving the response thereto from the account holder; and transmittingthe account holder's response to the online account to satisfy themulti-factor authentication request.
 2. The method of claim 1, furthercomprising the steps of: storing one or more of the account holder'sendpoints for the online account in a data store associated with theonline account; and utilizing said one or more endpoints to permit thethird-party to gain access to the online account, or informationpertaining to the online account, without requiring a response by theaccount holder to any subsequent multi-factor authentication requests.3. The method of claim 2, wherein the endpoint includes an email addressor a phone number.
 4. The method of claim 1, wherein the accountholder's credentials are collected via a user interface.
 5. The methodof claim 1, wherein the account holder's credentials are collected froma data store.
 6. A method for permitting a third-party entity to gainaccess, in a secure manner, to an online account held by an accountholder that is secured by a multi-factor authentication protocol,comprising the following steps performed by the third-party entity:collecting the account holder's credentials; encrypting the accountholder's credentials using one or more processors; temporarily storingthe account holder's encrypted credentials using one or more processors,wherein the encrypted credentials are held in memory; verifying theaccount holder's credentials by accessing, via one or more processors,the online account using the account holder's credentials; receiving amulti-factor authentication request from the online account, themulti-factor authentication request indicating that a response isrequired from the account holder before further access to the onlineaccount is granted; prompting the account holder for a response andreceiving the response thereto from the account holder; and transmittingthe account holder's response to the online account to satisfy themulti-factor authentication request.
 7. The method of claim 6, furthercomprising the steps of: storing one or more of the account holder'sendpoints for the online account in a data store associated with theonline account; and utilizing said one or more endpoints to permit thethird-party to gain access to the online account, or informationpertaining to the online account, without requiring a response by theaccount holder to any subsequent multi-factor authentication requests.8. The method of claim 7 wherein the endpoint includes an email addressor a phone number.
 9. The method of claim 6, wherein the accountholder's credentials are collected via a user interface.
 10. The methodof claim 6, wherein the account holder's credentials are collected froma data store.